company background image
114

Herald HoldingsSEHK:114 Stock Report

Market Cap

HK$350.6m

7D

-1.7%

1Y

0%

Updated

17 Oct, 2021

Data

Company Financials
114 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance2/6
Financial Health6/6
Dividends2/6

114 Overview

Herald Holdings Limited, together with its subsidiries, manufactures, sells, and distributes toys, computer products, housewares, clocks, watches, and electronic and gift products.

Price History & Performance

Summary of all time highs, changes and price drops for Herald Holdings
Historical stock prices
Current Share PriceHK$0.58
52 Week HighHK$0.50
52 Week LowHK$0.78
Beta0.65
1 Month Change-10.77%
3 Month Change-12.12%
1 Year Change0%
3 Year Change-32.56%
5 Year Change-45.79%
Change since IPO-44.23%

Recent News & Updates

Sep 20
Herald Holdings (HKG:114) Has Re-Affirmed Its Dividend Of HK$0.03

Herald Holdings (HKG:114) Has Re-Affirmed Its Dividend Of HK$0.03

The board of Herald Holdings Limited ( HKG:114 ) has announced that it will pay a dividend of HK$0.03 per share on the...

Sep 10
Increases to CEO Compensation Might Be Put On Hold For Now at Herald Holdings Limited (HKG:114)

Increases to CEO Compensation Might Be Put On Hold For Now at Herald Holdings Limited (HKG:114)

As many shareholders of Herald Holdings Limited ( HKG:114 ) will be aware, they have not made a gain on their...

Sep 07
Estimating The Fair Value Of Herald Holdings Limited (HKG:114)

Estimating The Fair Value Of Herald Holdings Limited (HKG:114)

In this article we are going to estimate the intrinsic value of Herald Holdings Limited ( HKG:114 ) by projecting its...

Jul 02
Herald Holdings (HKG:114) Is Due To Pay A Dividend Of HK$0.03

Herald Holdings (HKG:114) Is Due To Pay A Dividend Of HK$0.03

Herald Holdings Limited ( HKG:114 ) will pay a dividend of HK$0.03 on the 13th of October. Based on this payment, the...

Shareholder Returns

114HK LeisureHK Market
7D-1.7%2.5%1.1%
1Y0%23.3%5.3%

Return vs Industry: 114 underperformed the Hong Kong Leisure industry which returned 23.3% over the past year.

Return vs Market: 114 underperformed the Hong Kong Market which returned 5.3% over the past year.

Price Volatility

Is 114's price volatile compared to industry and market?
114 volatility
114 Beta0.65
Industry Beta0.71
Market Beta1

Stable Share Price: 114 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 114's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19924,123Kam-Hung Shumhttps://www.heraldgroup.com.hk

Herald Holdings Limited, together with its subsidiries, manufactures, sells, and distributes toys, computer products, housewares, clocks, watches, and electronic and gift products. The company offers a range of toys, including action figures, electronic radio-controlled toy cars and boats, electronic games, and pre-school toys; battery-operated and electronic toys, radio-controlled vehicles, transformers, and model kits and gift items. It also provides computer products, including magnetic tape heads for computer storage drives, thin-film magnetic recording heads, and motor actuator assemblies, as well as smart connected devices for Internet of Things comprising smart watches, thermostats, sensory array gateways and remote environmental sensors; and manufactures and sells watches under the Braun, Vivienne Westwood, and Lambretta brands.

Herald Holdings Fundamentals Summary

How do Herald Holdings's earnings and revenue compare to its market cap?
114 fundamental statistics
Market CapHK$350.60m
Earnings (TTM)HK$20.56m
Revenue (TTM)HK$927.78m

17.1x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
114 income statement (TTM)
RevenueHK$927.78m
Cost of RevenueHK$733.72m
Gross ProfitHK$194.06m
ExpensesHK$173.50m
EarningsHK$20.56m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.034
Gross Margin20.92%
Net Profit Margin2.22%
Debt/Equity Ratio0.2%

How did 114 perform over the long term?

See historical performance and comparison

Dividends

10.3%

Current Dividend Yield

176%

Payout Ratio

Valuation

Is Herald Holdings undervalued compared to its fair value and its price relative to the market?

35.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 114 (HK$0.58) is trading below our estimate of fair value (HK$0.9)

Significantly Below Fair Value: 114 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 114's PE Ratio (17.1x) is in line with the Hong Kong Leisure industry average.

PE vs Market: 114 is poor value based on its PE Ratio (17.1x) compared to the Hong Kong market (9.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 114's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 114 is good value based on its PB Ratio (0.5x) compared to the HK Leisure industry average (0.8x).


Future Growth

How is Herald Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.0%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Herald Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Herald Holdings performed over the past 5 years?

-21.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 114 has a large one-off gain of HK$21.8M impacting its March 31 2021 financial results.

Growing Profit Margin: 114's current net profit margins (2.2%) are higher than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: 114's earnings have declined by 21.2% per year over the past 5 years.

Accelerating Growth: 114's earnings growth over the past year (8.4%) exceeds its 5-year average (-21.2% per year).

Earnings vs Industry: 114 earnings growth over the past year (8.4%) underperformed the Leisure industry 8.4%.


Return on Equity

High ROE: 114's Return on Equity (2.7%) is considered low.


Financial Health

How is Herald Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 114's short term assets (HK$574.4M) exceed its short term liabilities (HK$188.3M).

Long Term Liabilities: 114's short term assets (HK$574.4M) exceed its long term liabilities (HK$41.4M).


Debt to Equity History and Analysis

Debt Level: 114's debt to equity ratio (0.2%) is considered satisfactory.

Reducing Debt: 114's debt to equity ratio has reduced from 0.6% to 0.2% over the past 5 years.

Debt Coverage: 114's debt is well covered by operating cash flow (2145%).

Interest Coverage: 114 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Herald Holdings's current dividend yield, its reliability and sustainability?

10.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 114's dividend (10.34%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 114's dividend (10.34%) is in the top 25% of dividend payers in the Hong Kong market (6.78%)


Stability and Growth of Payments

Stable Dividend: 114's dividend payments have been volatile in the past 10 years.

Growing Dividend: 114's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (176.4%), 114's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

13.8yrs

Average board tenure


CEO

Kam-Hung Shum (57 yo)

6.25yrs

Tenure

HK$4,056,000

Compensation

Mr. Kam-Hung Shum, ACIS, CPA has been the Managing Director of Herald Holdings Limited since July 1, 2015 and served as its Secretary since July 04, 2008 until June 30, 2015. Mr. Shum served at Herald Hold...


CEO Compensation Analysis

Compensation vs Market: Kam-Hung's total compensation ($USD521.44K) is above average for companies of similar size in the Hong Kong market ($USD230.47K).

Compensation vs Earnings: Kam-Hung's compensation has increased by more than 20% in the past year.


Board Members

Experienced Board: 114's board of directors are seasoned and experienced ( 13.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Herald Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Herald Holdings Limited
  • Ticker: 114
  • Exchange: SEHK
  • Founded: 1992
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Market Cap: HK$350.605m
  • Shares outstanding: 604.49m
  • Website: https://www.heraldgroup.com.hk

Number of Employees


Location

  • Herald Holdings Limited
  • Tower Two
  • 3110, 31st floor
  • Hong Kong
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/17 10:04
End of Day Share Price2021/10/15 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.